This invention is related in general to the field of document handling systems. More particularly, the invention is related to an automated system and method for check amount encoding at a point-of-sale.
The typical check processing procedure in use today is a long and tedious process, which requires one or more processing days and multiple repetitive steps. The typical procedure includes many opportunities for errors to be introduced.
The conventional check processing procedure is shown in FIG. 1 and begins, for example, at a retailer or point-of-sale. The cashier enters all the purchases and the register provides a total. The customer writes out a check for a specific dollar amount and presents it as payment for the amount owed, as shown in block 100. The retailer may check its internally-maintained xe2x80x9cbad checkxe2x80x9d list or with a check authorization service to determine if the account being drawn on has a history of under-funded checks. If the account has not been black listed, then the checking account owner may leave the retailer with the goods that were purchased. At the end of the day, the total of all checks received that day are totaled to compare with the register total. The register totals are combined to form a store total. The checks are then deposited with the retailer""s bank.
Some retailers have facilities to encode the transaction amounts on the checks before the checks are sent to the bank. Otherwise, the bank encodes the amounts on the checks, as shown in block 102, and charges the retailer a fee for this service. The encoding process is performed manually and labor-intensive, with an operator physically handling each check, viewing the amount, and then keying it on the face of the check. The check amount is then encoded in magnetic ink on the face of the check in a predetermined field or location, such as the bottom right of the check in alignment with the MICR line. The encoding speed per operator is slow, typically 1,200 to 1,400 checks per hour. Because this processing step relies heavily on the human operator, who must process a large quantity of documents in a short time, it is prone to errors. The check amount may be encoded incorrectly due to poor penmanship, the check amounts from the two fields of the check not matching, or a number of other reasons. The encoded checks are then tallied and compared with the total on the deposit ticket. This process is commonly termed xe2x80x9cproofing.xe2x80x9d
The encoded checks are then shipped to a central processing location for the xe2x80x9ccapturingxe2x80x9d step, as shown in block 104. High speed reader/sorters such as the 3890 document reader manufactured by IBM process the checks by reading and sorting the checks according to information printed on the MICR (magnetic ink character recognition) line located at the bottom of the check. The MICR information on the check includes the bank or transit number, account number, check serial number, in addition to the check amount encoded in step 102. The checks are read and sorted by bank or some other designation according to the transit and routing information present in the MICR line. Approximately 1 to 1.5% of checks are rejected because the MICR line information is not readable. The rejected checks are manually handled and corrected. A balance of credits and debits is then computed. The sorted checks, and a cash letter listing each check and their amounts, are then sent to the institutions owning the accounts that the checks are drawn on in a collection and transit process.
The transit process delivers the checks to the bank having the accounts the checks are drawn on, at which place another capturing process commonly termed xe2x80x9cinclearingxe2x80x9d is performed, as shown in block 106. Inclearing ensures that the checks are actually drawing on that bank""s accounts, the amounts are encoded on the checks, the correct settlement amount is given to the other banks, and that the correct amount is finally settled or posted out of the customer""s account, as shown in block 108. The checks may then be returned to the checking account owner, as shown in block 110.
It may be seen from the foregoing that the traditional check processing procedure is a time-consuming and tedious process. Each time the check is handled or encoded, an opportunity for error is introduced. As a result, check processing is a very costly procedure for banks and businesses.
Accordingly, there is a need for a system and method for check encoding at the time a check is tendered as payment at the point of sale.
In accordance with the present invention, a system and a method for automated check encoding at the point of sale (POS) are provided which eliminate or substantially reduce the disadvantages associated with prior check processing systems.
In an aspect of the present invention, an automated check encoding system at a point-of-sale includes a point-of-sale register for determining a transaction amount, and an input device coupled to the point-of-sale register for receiving the transaction amount and determining a check amount in response to receiving an input from a user. A check encoder is coupled to the point-of-sale register and the input device for receiving the check amount and encoding the check amount in a machine-readable format at a predetermined location on a blank check.
In another aspect of the present invention, a method for encoding checks at a point-of-sale includes the steps of first determining a transaction amount, receiving an input from a user in response to the transaction amount and determining a check amount, and receiving a blank check. The check amount is then encoded on the face of the blank check in a machine-readable format at a predetermined location at the point-of-sale.
In yet another aspect of the present invention, a method for encoding checks at a point-of-sale includes the steps of determining a transaction amount, receiving an input from a user in response to the transaction amount and determining a check amount, receiving a blank check. The payee name is then printed at a predetermined payee location on the blank check, a numeric check amount is printed on a predetermined numeric check amount location on the blank check, and the check amount is also printed in words on a predetermined word check amount location on the blank check. The check amount is further encoded on the face of the blank check in magnetic ink on a MICR line of the blank check. The encoded check is then issued to the user for payment at the point-of-sale.
In still another aspect of the invention, a pocket-size personal check encoder includes a keypad having a plurality of alphanumeric keys operable to receive a check amount from a user; a display coupled to the keypad and operable to display the check amount entered by the user; and a check encoder coupled to the keypad and display operable to receive the check amount from the keypad and encode the check amount in a machine-readable format at a predetermined location on a check.